You are on page 1of 107

PROJECT REPORT

On
MARKETING STRATEGY ADOPT
BY

PREPARED BY:
MBA 3rd SEM

TABAL OF CONTENTS

CHAPTER 1- INTRODUCTION
CHAPTER 2- OBJECTIVE
CHAPTER 3- SCOPE OF THE STUDY
PROFILE OF THE ORGANIZATION
MARKETING STRATEGY OF COCA COLA
CHAPTER 4- PROFILE OF THE ORGENIZATION COMPETITOR
CHAPTER 5- ADVERTISING AND SALS PROMOTION
CHAPTER 6- DISCUSSIONS ON TRAINING
CHAPTER 7- STUDY OF SELECTED RESEARCH PROBLEM
CHAPTER 8- ANALYSIS OF DATA
CHAPTER 9- SUMMARY AND CONCLUSIONS
CHAPTER 10-ANNEXURES

CHAPTER 1
INTRODUCTION

GENERAL INTRODUCTION ABOUT THE SECTOR


Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG)
are products that have a quick turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products. The Indian FMCG
industry witnessed significant changes through the 1990s. Many players had been facing
severe problems on account of increased competition from small and regional players and
from slow growth across its various product categories. As a result, most of the companies
were forced to revamp their product, marketing, distribution and customer service strategies
to strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian customer
witnessed an increasing exposure to new domestic and foreign products through different
media, such as television and the Internet. Apart from this, social changes such as increase in
the number of nuclear families and the growing number of working couples resulting in
increased spending power also contributed to the increase in the Indian consumers' personal
consumption. The realization of the customer's growing awareness and the need to meet
changing requirements and preferences on account of changing lifestyles required the FMCG
producing companies to formulate customer-centric strategies. These changes had a positive
impact, leading to the rapid growth in the FMCG industry. Increased availability of retail
space, rapid urbanization, and qualified manpower also boosted the growth of the organized
retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of
the FMCG industry by focusing on rural markets, direct distribution, creating new product,
distribution and service formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free zones in various parts of
the country that witnessed firms moving away from outsourcing to manufacturing by
investing in the zones.
Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will
not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady
manner irrespective of global market dip, because they generally satisfy rather fundamental,
as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the
fourth largest sector in the Indian Economy and is worth Rs.93000 crores. The main
contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the
year 2010, the FMCG sector will be worth Rs.143000 crores. The sector being one of the
biggest sectors of the Indian Economy provides up to 4 million jobs.

INDUSTRY PROFILE
ORIGIN AND DEVELOPMENT OF THE INDUSTRY
Soft drink industry scenario the world over is almost the same with two major players i.e.
Pepsi Co. and Coca-Cola having the major thank in the pie. The other major player in the
industry is Cadbury-Schweppes and some local player in individual countries. The major
components of the industry consist of the concentrate manufactures, bottles and the sales and
distribution network of the companies the rule and responsibilities of each of them are
different.
The major activity taken up by the concentrate manufactures relates to the production of the
basic product which is battled by the battling plants mostly independents and subsequently
sold through the established distribution set ups of the respective companies. Incidentally a
lions share of the total sales of the product of most of the companies is through fountain a
sale which sums to be the most popular outlet in the western countries. Through in India
fountain sales from a very insignificant part of the sales revenue. During the initial stag both
soft drink majors used a network of independent bottlers to bottle and market their products.
Independents bottling arose primarily because it was not possible to create an effective
organization for operating a vertically integrated company with hundreds of geographically
separated manufacturing unit and local delivery operations given the limited transportation
and communication system of the time and the lack of sophisticated financial and
management controls.

Although Coca-Cola and Pepsi Co. are premier marketing companies the fundamental
competitive advantage that allowed that to compete so effectively lies in their ability to
operate through a very cumbersome distribution system.
In India after the exit of coke in 1977 Parley and pure drinks controlled the Indian Soft
Drinks market. By the end of 1970 Campa-Cola was practically alone in Cola market Parleys
introduced Thums up in the beginning of 1980s. By the end of 80s Parley with Limca, gold
spot and Thums up emerged as clear winner with around 60% market share.
In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This
proposal as rejected on the grounds that the import of concentrate could not be agrees and the
use of foreign brand name was not allowed. In year 1988 Pepsi again floated a project this
time in collaboration with Punjab agro Corporation (PIAC) and Voltas India Limited and
succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of Lehar
Pepsi.
The most strategic step taken by Coca Cola was the purchase of Parley brands. With this
coke instantly had the ownership of countries tap soft drinks brands as well as got access to
Parleys extensive 54 plants bottling as well as a pre set distribution net work. This purchase
gave coke an over might lead occur rival Pepsi which had came almost 5 year earlier.

GROWTH AND PRESENT STATUS OF THE INDUSTRY


The total value of the soft drink industry was $48 billion in 1990s. The average in the states
48 gallons per year. Industry analyst contended that the soft drink industry had plateaued, and
that total consumption was unlikely to increase significantly in the near future. As a
consequence, the cola wars were moving to international markets. Although, after the mid
90s both company found a different strategy fueled by the twin engines of innovation and
diversity. Consumers are drinking a widening assortment of beverages. There is increasing
demand for health and nutrition drinks (juices and juice-based products), rejuvenation drinks
(tea and coffee), and replenishment drinks (sports drinks and water). Coke, the worlds
largest soft drink company with a 45% share of the worldwide soft drink market, earned 80%
of its profits outside of the United States in 1993. In according to this, Pepsi, with only 15%
of its beverage operating profits coming from overseas was using guerilla warfare to attack
Coke in selected international markets. Americans consumed 23 gallons of soft drinks a year
in 1970 compared to 48 gallons in 1993. This growth was fueled by increasing availability
and affordability of soft drinks in the marketplace, as well as the introduction and growth of
diet soft drinks. And then become stabile. For improve profits on the saturated market was
possible by cost reduction, new products but not cannibalize your products, and better value
chain that returns you as a competitive advantage. It was not easy. There were many
alternative to soft drinks ; coffee, beer, milk, tea, bottled water, juices, powdered drinks,
wine, distilled spirits, and tap water. The 1980s Pepsi and Coke transformed their businesses.
These consumer-oriented businesses experienced changes in the forces impacting key
strategy areas: investment; distribution channels; trade and manufacturer relations;
shareholder pressure; marketing and promotional programme design; new competitors and

proliferation of products across their traditional categories, etc. Using 1978 as a base year,
the Consumer Price Index (CPI) grew at an average rate of 5.9%, compared with soft drink
price growth 3.8%. Consumer demand appeared to be sensitive to price increases. The cola
segment of the soft drink industry held the dominant (68%) share of the market in 1992,
followed by lemon/lime with 12%, pepper flavor 7%, orange 3%, root beer 2%, and others
8%. Coke and Pepsi had a combined 73% of the soft drink market.
Pepsi and Coca-Cola have more than 200 different products globally in 2000.

FUTURE OF THE INDUSTRY


Consumers are drinking a widening assortment of beverages. There is increasing demand for
health and nutrition drinks (juices and juice-based products), rejuvenation drinks (tea and
coffee), and replenishment drinks (sports drinks and water). Soft drink companies intend to
fulfill the needs of consumers for every occasion at every stage of their lives. Both Pepsi and
Coca Cola pronounced their self a total beverage company. More and more, people are
turning to noncarbonated beverages to give them vigor and energy. Whether its for a lift
during the day or for enjoyment after the workday ends, consumers are embracing ready-todrink teas and coffees. With every new discovery of the health benefits of teas, demand
increases

even

more.

The basic product of soft drink companies cola. Today, cola is the most consumed
beverage, still in the world. Even as lifestyles change all over the world, there is one
beverage that remains the essential element for all people water. Soft Drink Companies
are also focusing on their portfolio of replenishment beverages to meet differing local tastes
for water and to provide sports drinks that quench the thirst of people with active lifestyles.

10

CHAPTER 2
OBJECTIVE

11

Objectives

To study the marketing strategies adopted by coca cola


Various strategies adopted by the company
To study the local and regional marketing strategies
To find out the data analysis

12

PROFILE OF THE
ORGANIZATION

The Mission Statement of the Coca Cola Company

13

Our mission statement is to maximize shareowner value over time.


In order to achieve this mission, we must create value for all the constraints we serve,
including our consumers, our customers, our bottlers, and our communities. The Coca
Cola Company creates value by executing comprehensive business strategy guided by
six key beliefs:

1. Consumer demand drives everything we do.


2. Brand Coca Cola is the core of our business
3. We will serve consumers a broad selection of the nonalcoholic ready-todrink
beverages they want to drink through out the day.
4. We will be the best marketers in the world.
5. We will think and act locally.
6. We will lead as a model corporate citizen.

The ultimate objectives of our business strategy are to increase volume, expand our
share of worldwide nonalcoholic ready to drink beverages sales, maximize our longterm cash flows, and create economic value added by improving economic profit.

The Coca Cola system has more than 16 million customers around the world that sells or
serves our products directly to consumers. We keenly focus on enhancing value for these
customers and helping them grow their beverage businesses. We strive to understand each

14

customers business and needs, whether that customer is a sophisticated retailer in a


developed market a kiosk owner in an emerging market.

There are nearly 6 million people in the world who are potential consumers of our companys
product. Ultimately, our success in achieving our mission depends on our ability to satisfy
more of their beverage consumption demands and our ability to add value for customers. We
achieve this when we place the right products in the right markets at the right time.

ORIGIN OF THE ORGANIZATION

Coca-Cola is a carbonated soft drink sold in almost all the countries of the world. Coca-Cola
is manufactured by The Coca-Cola Company and is often referred to as Coke. Coke is one
of

the

most

recognizable

brands

Coca-Cola was invented by John Stith

in

the

world.

Pemberton in Covington, Georgia in

May 1886. The beverage was initially a coca wine and was called Pembertons French Wine
Coca. After Atlanta and Fulton County passed Prohibition legislation, Pemberton made a
carbonated, non-alcoholic version of French Wine Cola and called it Coca-Cola. Coca leaves
from South America were added as a stimulant to the beverage along .with kola nuts which
were added to give flavor to the drink. Due to them the name Coca-Cola was given to the
beverage. Asa Candler, who was also a pharmacist of Atlanta, bought the formula for Coca-

15

Cola in 1887 from John

Pemberton for $2,300. Asa Candler marketed Coke

aggressively and was responsible of the dominance of the world soft drink market by Coke.
During Pembertons time five ounces of coca leaf were added per gallon of the syrup which
constituted a significant dose. Candler claimed in 1891 that he had altered the formula of
Coca-Cola and it now contained only a tenth of amount of coca leaves. Coca-Cola also
contained nine milligrams of cocaine per glass till 1904, when they started using spent
leaves instead of fresh leaves.

GROWTH AND DEVELOPMENT OF THE ORGANIZATION


The Company's presence worldwide was growing rapidly, and year after year, Coca-Cola
found a home in more and more places: Cambodia, Montserrat, Paraguay, Macau, Turkey
and more.
In 1978, The Coca-Cola Company was selected as the only Company allowed selling
packaged cold drinks in the People's Republic of China.
The 1980s -- the era of legwarmers, headbands and the fitness craze, and a time of much
change and innovation at The Coca-Cola Company. In 1981, Roberto C. Goizueta became
chairman of The Board of Directors and CEO of The Coca-Cola Company. Goizueta, who
fled Castro's Cuba in 1961, completely overhauled the Company with a strategy he called
"intelligent risk taking."
One of Goizueta's other initiatives, in 1985, was the release of a new taste for Coca-Cola, the
first change in formulation in 99 years. In taste tests, people loved the new formula,
commonly called new Coke. In the real world, they had a deep emotional attachment to the

16

original, and they begged and pleaded to get it back. Critics called it the biggest marketing
blunder ever. But the Company listened, and the original formula was returned to the market
as Coca-Cola classic, and the product began to increase its lead over the competition -- a
lead that continues to this day.
The 1990s were a time of continued growth for The Coca-Cola Company. The Company's
long association with sports was strengthened during this decade, with ongoing support of the
Olympic Games, FIFA World Cup football (soccer), Rugby World Cup and the National
Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR
racing, connecting the brand with one of the world's fastest growing and most popular
spectator sports.
New beverages joined the Company's line-up, including Powerade sports drink, Qoo
children's fruit drink and Dasani bottled water. The Company's family of brands further
expanded through acquisitions, including Limca, Maaza and Thums Up in India,
Barq's root beer in the U.S., Inca Kola in Peru, and Cadbury Schweppes' beverage
brands in more than 120 countries around the world. By 1997, the Company already sold 1
billion servings of its products every day, yet knew that opportunity for growth was still
around every corner.
In 1886, Coca-Cola brought refreshment to patrons of a small Atlanta pharmacy. Now well
into its second century, the Company's goal is to provide magic every time someone drinks
one of its more than 400 brands. Coca-Cola has fans from Boston to Budapest to Bahrain,
drinking brands such as Ambasa, Vegitabeta and Frescolita. In the remotest comers of the
globe, you can still find Coca-Cola.

17

From the early beginnings when just nine drinks a day were served, Coca-Cola has grown to
the worlds most ubiquitous brand, with more than 1.4 billion beverage servings sold each
day. When people choose to reach for one of The Coca-Cola Company brands, the Company
wants that choice to be exciting and satisfying, every single time.

PRESENT STATUS OF THE ORGANIZATION


Asia will be the biggest driver of Coca-Colas growth over the next 10 years, the head of the
worlds biggest beverage company said, adding that the company had lost out by not
investing enough in the region in the past. Asia is at the core, Neville Isdell, the chairman
and chief executive of the Atlanta, Georgia-based Coca-Cola Co., said. The company said its
worldwide unit-case volume sales grew 6%the highest rate since 2002. Isdell said CocaCola has invested more than $1 billion (Rs4, 100 crores) over the last 12 months in Asia,
particularly in the Philippines, China, India and Indonesia.
Coca-Cola Co slightly increased its lead over rival Pepsi-Cola Co in 2002, thanks to the
successful launch of Vanilla Coke and the growth of Diet Coke, according to US soft drink
industry rankings.
Coke gained 0.6 percentage points in market share and increased its case volume by 2.1 per
cent, according to beverage digest-/Maxwell, a New York-based industry newsletter and data
service said. The company captured a larger share of the market even though its coke classic
brand fell 0.6 percentage points in market share. Atlanta-based Coca-Cola dominates 44.3 per
cent of the US soft drink market, but saw its market share drop between 1999 and 2001.

18

With the latest gains, its only 0.2 percentage points away from where it stood in 1998 at
44.5.

FUNCTIONAL DEPARTMENTS OF ORGANIZATION


There are 6 functional departments within Coca Cola.
Marketing
Finance
Packaging
Sales
Research and development
Administration

Marketing
The

Coca

develops

Cola

core

marketing

strategies

communication

is

the

system

Coca-Cola

profitable
marketing
products.
objectives

growth.
the
If

of

for

consistent

in

maximizes

The

products
all

department

these
The

company

the

brands

every

market.

its

resources

marketing
and

at

departments

the

perform

Coca-Cola

Finance
19

to

With
for

departments

advertising

Atlanta

Company

ensure
this

are

that

cohesive

market

products
their

Headquarters
all
effort,

leadership

responsible
and

duty

for

promoting

firmly
will

and

then
meets.

the
the

The

finance

financial

record

received
the

department

and

annual

company
the

keeping.

paid
reports

management

budget

out.

of

involved

or
in

the

involves

Finance
of

company

Cola

records

business

department

and

for

is

process

be

that
is

also

money

to

produce

can

see

the

responsible

for

marketing
responsible

department

taking

etc.
for

like

They

over

for

of

used

also

department.

like

responsible

they

like

each

development

planning

so

is

records

will

department

the

and

Company
keeping

shareholders

finance

research

Coca

financial

the

accounts

the

department

The

The

Company

the
This

for

performance.

Coca-Cola

of

making

marketing

will

or

The

also

any

be

major

decision.

Packaging
The
for

packaging
the

packaging

attractive

so

Bringing

new

the

department
of

that

companies

of

the

that

The

Coca-Cola

products.
product

They

meets

Department

have
the

products

package

is

their

bottling

partners

to

produce

to

make

eyes

of

responsible

the
the

responsibility.
an

is

It

attractive

packaging
consumers.

works

with

combination.

Sales
The

sales

selling

department

program.

of

They

the

also

Coca

have

to

Cola
make

Company
the

is

to

distribution

coordinate

the

methods,

etc.

Also, decide how much to sell and how much to store in the warehouse
and

to

choose

the

transporting

method

and the quickest way.

20

which

is

the

most

cost

efficient

Research

and

This

department

their

responsibility

is

with

marketing

looking

bring

new

cannot
have

by

their

products

stick
to

has

the

research

department

launched

many new

Minute

to

the

improve

budget

at

maids,

market
old

quality

of

done

products

by

new

marketing

same

has

given

investigate

in the

with

development

the

finance

products.
research

department

They

work

findings.

They

for the change because


products.
the
of

raspberry,

essential

for

The

research

Diet

Fanta

necessary

products.

lot

like

If

coke

with

Fanta

to

the consumer

then

they

lemon,

also

Company

recently

they

Fanta

blue

closely
have

Coca-Cola

and

and

have

Tropical,

berry

etc.

Administration
This
as

department
a

help

business
Most

is

support

but

every

businesses

enquiries,

give

customer.

The

transferred

to

product

of

the

company,

business

rely

on

messages

better

or

is

this

and
problem

business

not

the

would

to

be

documents

that

the

the

organization

produce

research
fix

it

administration

complaints
the

keeping

central

need

and

give

development

act

purpose

the

department.

They

deal

information

will

get

department

the

They

this

organized.

department

that

going.

consumer

to

is

to

with
any

would

be

make

the

having.

These

departments are the most important department of The Coca-Cola Company


because

they

Coca-Cola
profits.
customer

helps

Company
As
by

the
i.e.

said
providing

company
surviving,

that
the

the

to

meets

customer
help

information
21

the

objectives

satisfaction

desk
they

and

department
needs

and

of

The

make

more

satisfies

the

taking

the

complaints

and

passing

to

the

research

and

development

departments

who

improves the products.

ORGANIZATION STRUCTURE AND ORGANIZATION


CHART
The Coca-Cola Company has made a lot of changes in the last year with the structure of their
company from top management to the employees at the bottom of line in terms of power in
the company. In years past the Coke Company has had more of a centralized organizational
structure. Many of the most powerful people the company was tired of Ivester's cramped
management style of leadership and became concerned about his future at the company.
When Doug Daft took over as chairman and CEO of the Coca-Cola Company the
organizational structure really changed from the centralized type of structure to the
decentralized type of structure within the Coke Company. Doug Ivester was running the
show by himself and was unwilling to take advice from others and this was apparent when
Doug Daft came in to replace him as CEO. The centralized style of management in the past
had been everyone in the main branch in Atlanta. All areas of the business from foreign
affairs in different countries and matters in the states were all centralized out of the Atlanta
building. After daft took over a Financial Requirements When the Coca Cola company wants
to put a new product on the market, buy out another company, implement new technology, or
spend money in any other area there are four ways that the company can go about doing so.
This investment is going to last over the fifteen years and is going to cost the Coca-Cola
Company millions of dollars over that time. All three of these new drinks have been put in
place to help Coca-Cola expand the company's dominance in the beverage market. Coca-

22

Cola can use profits from sales, sell stock, borrow money or issue bonds. s CEO He decided
that the company would be better run if there were more of a decentralized form of
management put into place. 90% of Coke's business was in the hands of powerful bottling
companies and this balance of power as well as personal relations must be maintained to run
a successful corporation. The company also needs to make sure in the meantime that they
advertise to their consumers the importance of recycling in today's society. As the company
changed their managing structure they have put people in high management positions in all
parts of the world where the Coca-Cola Company has put in their products. Culture and
leadership Feasibility The cultural and leadership aspects of the Coca-Cola Company have
changed along with the major changes in the organization structure. One good idea would be
for the company to try and invent and produce a biodegradable bottle that would be better for
the environment. In the last six months Coke has gone out and put a lot of money in the
furthering of the company in many different ways. A good CEO or any top executive to be
successful has to be able to handle crises and let the people who are working for you know
that they are important at all levels of the company and allow everyone to see a purpose and
importance in their jobs. Any large corporation like Coke has a social responsibility to give
back some of what the consumers have given to them. By enacting a decentralized
organizational structure Coca Cola has been able to put people in the most suitable leadership
positions around the world and here in the United states that will help the Coca Cola
Company grow and become even more dominate in the future.

MAJOR SEGMENTS
Major segments are basically those people who take this drink daily and those areas where
the demands are higher then the other areas. There are so many people who take this drink
23

daily and those people who take weekly and those who take less often are always there as
well. So, their basic segments are those people who take this drink regularly.

TARGET MARKET
Cokes commercials basically based on young generations, so, the young generation is the
target market of Coke because they want to represent Coke with the youth and energy but
they also consider about the old people they take then as a co-target market.

FACTORS EFFECTING SALES


There are so many factors, which affects the sale of coke. Here we are discussing three major
factors which effects coke.

Per capita income

Competitors

Weather

Per Capita Income


First we will discuss about Per capita income. This is major factor that affects the sale of
this soft drink. Because which every passing year budgets are becoming very strict and tight
in order to purchase things. So the disposable incomes of the people are coming down. They
spend heavily on rents, utilities, and education and basic necessities and after that when they
get extra money they think about this soft drink .So the decreasing per capita income effects
badly in selling and production of this soft drink . And to get through with this difficulty there

24

is need to increase the level of per capita income of Pakistan because it is much lesser than
the rest of the countries.

Competitors
Cokes major competitor is PEPSI and there is no hesitation to say these because every one
knows that and all the other cold drinks and water, coffee, tea are the competitors.

Weather
Weather is the third major factor in effecting the Cokes selling. This is underdeveloped
market so the cokes consumption in summers is 70% and in winters is 30%.

MAJOR CUSTOMERS NEED


First of all the majority dont care that what they are going to have. In other words, they
dont care before drinking that whether it is Pepsi or coke. They dont actually
differentiate between these two brands in order to their tastes.
Consumers basically drink what they get.
They believe on WHAT COLD THEY SOLD
Consumers availability in brands is basically works like:

Push availability

Pull consumers demand.

25

For this reason Coca-Cola have provided their coolers and freezers in the market. They have
maximum number of coolers and freezers in the market. They provide this infrastructure free
of cost just to provide child coke to their customer, which they want to be purchase.
Their salesman and mechanics regularly visit all the shops where coke has its infrastructure
to check that either it is in proper condition or not, if not then they immediately change or
repair it.

STRATEGIES OF GETTING GOALS I.E. HIGH PROFITS


To increase the price is the least thing, which Coke can adopt. There are so many ways
through which Coke can increase the profits. Some major ways are as follows.

Volume can be increased

Interest level of consumers

To take part in energetic festivals

How to increase the volume of consumers?


Coke can increase the volume by expanding the industry of coke. Through advertisements,
offering different interesting things to attract people towards this product.

How to increase the interest level of consumers?

26

Coke is increasing the interest level of consumers by offering different flavors. For example
Coke is increasing the number of flavors in Fanta, this is one of
the product of coke. Through offering different flavors Coke can increase the Level of
consumers and through this profits can be gained.

How to take part in energetic events?


Coke is already taking part in the events like world cup cricket since last many years. Coke
offers different attractive things in their events and through this Coke gained high profit and
consumption of coke increased on these occasions.

27

PRODUCTS OF COCA-COLA

Coca-Cola serves in India some of the most recalled brands across the world,

Which include names such as Coca-Cola, Thumps up, Sprite, Fanta, along with

The Schweppes product range.

The acquisition of Thums Up brought some of the leading national soft drinks like

Thums Up, Limca, Maaza, Citra and Gold Spot under its umbrella. To add to

This, Kinley mineral water was launched in the year 2000.

The Company ranking up "firsts" in the introduction of Canned and PET soft

28

drinks, vending machines and backpack dispensers for crowds of cricket supporters.

COCA COLA BEVERAGES

29

BRANDS:

Thums up

Maaza

Sprite

Fanta

Coca cola

Kinley

Sun fill

30

COCA COLA

SLOGAN: -

31

THANDA MATLAB COCA- COLA

JO CHAHE HO JAYE COCA-COLA ENJOY


SAR UTHA KE PIYO

The world`s famous drink, the world 1s most valuable brand. he most recognizable word
across the world after OK .Coca Cola has truly remarkable heritage. Developed in a brass pot
in 1886, Coca-Cola is the most recognized and admired trademark around the globe. Not to
mention the best selling soft drink in the world.

In India .Coca Cola was the leading soft-drink till 1977 when government policies
necessitated its departure.Coca Cola made its return to the country in 1993 and made
significant investments to ensure that the beverage is available to more and more people,
even in the remote and inaccessible parts of the nation.

32

THUMS-UP
SLOGAN: I WANT MY THUNDER"

"THUMPS UP TASTE THE THUNDER"

Originally introduced in 1977, Thums Up was acquired by The Coca-Cola Company in


1993.Thums Up is a leading carbonated soft drink and most trusted brand in India. Thums
33

Up is known for its strong, fizzy taste and its confident, mature and uniquely masculine
attitude. This brand clearly seeks to separate the men from the boys.Coca Cola has also
launched several contests for the promotion of Thums up like Hai Dum and Ninja Jeeto
Contest to attract the Youth. Coca Cola spent $ 3.5 million to beef up advertising and
distribution for Thums Up. By 2002, it had become India`s No.1 cola drink India.

MAAZA

SLOGAN: -

"Taaza Mango, Maaza Mango"


34

"Botal mein Aam, Maaza hain Naam".

Maaza was launched in 1976. Here was a drink that offered the same real taste of fruit juices
and was available throughout the year. In 1993, Maaza was acquired by Coca-Cola India.
Maaza currently dominates the fruit drink category. It is available in SKUs of 200ml RGB,
250ml RGB, 125ml Tetrapak and 200ml Tetrapak

35

SPRITE

SLOGAN: -

"SPRITE BUJHAYA ONLY PYAAS, BAKI ALL BAKWAAS"

"DHIKAWE PE MAT JAO APNI AKHAL LAGAO

36

In India, Sprite was launched in year 1999.Sprite is perceived as a youth icon. With a strong
appeal to the youth, Sprite has stood for a straightforward and honest attitude. Its clear crisp
refreshing taste encourages the today's youth to trust their instincts, influences them to be
true to who they are and to obey their thirst. Sprite is available around the country in 200ml,
300ml, 500ml, and 500ml + 100ml free, 1.5ltr, 2ltr, 2.25ltr and 330ml cans.

Today Sprite is perceived as a youth icon. Why? With a strong appeal to the youth,
Sprite has stood for straight forward and honest attitude. Its clear crisp refreshing taste
encourages the todays youth to trust their instincts, influences them to be true to who they
are and to obey their thirst.

37

FANTA

SLOGAN: -

KUCH BH1 HO SAKTA HAI

MASTI KA APNA TASTE

Internationally,

Fanta

- The

'orange'

drink of

The

Coca-Cola

Company

is seen as one of the favorite drinks since 1940's. Fanta entered the Indian market in the year
1993. Perceived as a fun youth brand, Fanta stands for its vibrant color, tempting taste and
tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to
indulge in the moment. This positive imagery is associated with happy, cheerful and special
times with friends. Over the years Fanta has occupied a strong market place and is identified
as The Fun Catalyst.
38

Fanta advertising over a time has the biggest association with fun and friends that have
reflected through past TV commercials like Masti ka Apna Taste,Bajao Masti.

LIMCA

SLOGAN: -

JUST TAKE IT EASY

39

Born in 1971, Limca has been the original thirst choice, of millions of consumers for over 3
decades. The brand has been displaying healthy volume growths year on year and Limca
continues to be the leading flavour soft drink in the country.

The success formula The sharp fizz and lemoni bite combined with the single-minded
positioning of the brand as the ultimate refresher has continuously strengthened the brand
franchise. Limca energizes, refreshes and transforms.

The brand has been displaying healthy volume growths year on year and Limca continues to
be the leading flavour soft drink in the country.

40

SUNFILL

Sunfill powder drink has been developed locally based on the Indian consumer preferences.
We have kept in mind the Indian palate ( Taste / Sweetness /Sourness /Orange flavour )
.Sunfill is also present in other countries, either in the form of a fruit n juice based drink, or
in the powdered concentrate form in countries like Indonesia, Sri lanka and Bangladesh. It
has been developed using the Coca Cola Company`s expertise in the beverage business.

Keeping in mind the affordability factor and the competition, Sunfill is available in three
variants-Sunfill Regular, Sunfill Anand and Sunfill Tarang.

41

KINLEY

SLOGAN: 42

Boond Boond Mein Vishvaas.

Water, a thirst quencher that refreshes, a life giving force that washes all the toxins away. A
ritual purifier that cleanses, purifies, transforms. Water, the most basic need of life, the very
sustenance of life, a celebration of life itself. Kinley water understands the importance and
value of this life giving force. Kinley water thus promises water that is as pure as it is meant
to be. Water you can trust to be truly safe and pure. Kinley water comes with reverse-osmosis
along with the latest technology to ensure the purity.

43

CHAPTER 3
SCOPE OF THE STUDY
MARKETING
STRATEGIES OF
COCA COLA

44

Our local marketing strategy enables Coke to listen to all the voices around the world asking
for beverages that span the entire spectrum of tastes and occasions. What people want in a
beverage is a reflection of who they are, where they live, how they work and play, and how
they relax and recharge. Whether you're a student in the United States enjoying a refreshing
Coca-Cola, a woman in Italy taking a tea break, a child in Peru asking for a juice drink, or a
couple in Korea buying bottled water after a run together, we're there for you. We are
determined not only to make great drinks, but also to contribute to communities around the
world through our commitments to education, health, wellness, and diversity. Coke strives to
be a good neighbor, consistently shaping our business decisions to improve the quality of life
in the communities in which we do business. It's a special thing to have billions of friends
around the world, and we never forget it.

PRICE STRATEGY
Trade Promotion
Coca Cola Company gives incentives to middle men or retailers in way a that they offer them
free samples and free empty bottles, by this these retailers and middle man push their product
in the market. And thats why coca cola seen more in the market. And they have a good sale
in the market because according to the expert which product seen more in the market that
sells more.

45

They do agreements with a shop keepers and stores to exclusive sale in that store. These
stores are called as KEY accounts in their local language.
And coke also invest heavy budget on these stores and offers them free samples and free
bottles and some time cash incentives.

Different Price In Different Seasons


Some times Coca Cola Company changes their product prices according to the season.
Summer is supposed to be a good season for beverage industry in India.
So in winter they reduce their prices to maintain their sales and profit. But normally they
reduce the prices of their pet bottles or 1 litter glass bottle.

PROMOTION STRATEGIES
Getting shelves
They gets or purchase shelves in big departmental stores and display their products in that
shelves in that style which show their product more clear and more attractive for the
consumers.

Eye Catching Position


Salesman of the coca cola company positions their freezers and their products in eyecatching positions. Normally they keep their freezers near the entrance of the stores.

46

Sale Promotion
Company also do sponsorships with different college and schools cafes and sponsors their
sports events and other extra curriculum activities for getting market share.

UTC Scheme
UTC mean under the crown scheme, coca cola often do this type of scheme and they offer
very handy prizes in it. Like once they offer bicycles, caps, tv sets, cash prizes etc. This
scheme is very much popular among children.

DISTRIBUTION CHANNELS STRATEGY


Coca Cola Company makes two types of selling
Direct selling
Indirect selling

Direct Selling
In direct selling they supply their products in shops by using their own transports. They have
almost 450 vehicles to supply their bottles. In this type of selling company have more profit
margin.

Indirect Selling

47

They have their whole sellers and agencies to cover all area. Because it is very difficult for
them to cover all area of Pakistan by their own so they have so many whole sellers and
agencies to assure their customers for availability of coca cola products.

FACILITATING THE PRODUCT BY INFRASTRUCTURE

For providing their product in good manner company has provided infrastructure these
includes:

Visi cooler

Freezers

Display racks

Free empty bottles and shells for bottles

ADVERTISEMENT STRATEGY
Coca Cola Company use different mediums

Print media

Pos material

TVs commercial

Billboards and holdings

Print Media
48

They often use print media for advertisement. They have a separate department for print
media.

POS Material
Pos material mean point of sale material this includes: posters and stickers display in the
stores and in different areas.

TV Commercials
As everybody know that TV is a most common entertaining medium so TV commercials is
one of the most attractive way of doing advertisement. So Coca Cola Company does regular
TV commercials on different channels.

Billboards and Holdings


Coca cola is very much conscious about their billboards and holdings. They have so many
sites in different locations for their billboards.

49

CHAPTER 4
PROFILE OF
ORGANIZATION
COMPETITORS

50

PepsiCo, Inc. is one of the world's top consumer product companies with many of the
world's most important and valuable trademarks. Its Pepsi-Cola Company division is the
second largest soft drink business in the world, with a 21 percent share of the carbonated soft
drink market worldwide and 29 percent in the United States. Three of its brands--Pepsi-Cola,
Mountain Dew, and Diet Pepsi&mdashe among the top ten soft drinks in the U.S. market.
The Frito-Lay Company division is by far the world leader in salty snacks, holding a 40
percent market share and an even more staggering 56 percent share of the U.S. market. In the
United States, Frito-Lay is nine times the size of its nearest competitor and sells nine of the
top ten snack chip brands in the supermarket channel, including Lay's, Doritos, Tostitos,
Ruffles, Fritos, and Chee-tos. Frito-Lay generates more than 60 percent of PepsiCo's net sales
and more than two-thirds of the parent company's operating profits. The company's third
division, Tropicana Products, Inc., is the world leader in juice sales and holds a dominant 41
percent of the U.S. chilled orange juice market. On a worldwide basis, PepsiCo's product
portfolio includes 16 brands that generate more than $500 million in sales each year, ten of
which generate more than $1 billion annually. Overall, PepsiCo garners about 35 percent of
its retail sales outside the United States, with Pepsi-Cola brands marketed in about 160
countries, Frito-Lay in more than 40, and Tropicana in approximately 50. As 2001 began,
PepsiCo was on the verge of adding to its food and drink empire the brands of the Quaker
Oats Company, which include Gatorade sports drink, Quaker oatmeal, and Cap'n Crunch,
Life, and other ready-to-eat cereals.
When Caleb D. Bradham concocted a new cola drink in the 1890s, his friends' enthusiastic
response convinced him that he had created a commercially viable product. For 20 years,
'Doc' Bradham prospered from his Pepsi-Cola sales. Eventually, he was faced with a

51

dilemma; the crucial decision he made turned out to be the wrong one and he was forced to
sell. But his successors fared no better and it was not until the end of the 1930s that PepsiCola again became profitable. Seventy years later, PepsiCo, Inc. was a mammoth
multinational supplier of soft drinks, juices, and snack food. PepsiCo's advance to that level
was almost entirely the result of its management style and the phenomenal success of its
television advertising.
Doc Bradham, like countless other entrepreneurs across the United States, was trying to
create a cola drink similar in taste to Coca-Cola, which by 1895 was selling well in every
state of the union. On August 28, 1898, at his pharmacy in New Bern, North Carolina,
Bradham gave the name Pepsi-Cola to his most popular flavored soda. Formerly known as
Brad's Drink, the new cola beverage was a syrup of sugar, vanilla, oils, cola nuts, and other
flavorings diluted in carbonated water. The enterprising pharmacist followed Coca-Cola's
method of selling the concentrate to soda fountains; he mixed the syrup in his drugstore, then
shipped it in barrels to the contracted fountain operators who added the soda water. He also
bottled and sold the drink himself. In 1902 Doc Bradham closed his drugstore to devote his
attention to the thriving new business. The next year, he patented the Pepsi-Cola trademark,
ran his first advertisement in a local paper, and moved the bottling and syrup-making
operations to a custom-built factory. Almost 20,000 gallons of Pepsi-Cola syrup were
produced in 1904.

52

CHAPTER 5
ADVERTISING AND
SALES PROMOTION

53

ADVERTISING
As defined by the American Marketing Association (AMA), Advertising is ay from of nonpersonal presentation of goods, services or ideas for action, openly paid for by an identified
sponsor.
Advertising today is a worldwide phenomenon. It is important at the outset to recognize that
many advertisers use advertisements for many purposes with many different possible effects.
Advertisements can be recognized s paid non-personal communication forms used with
persuasive intent by identified sources through various media. Advertising are most
commonly associated with the mass media of newspapers, magazines, cinema, television,
and radio, although they frequently flourish in the other forms such as billboards, poster, and
direct mail as well and finally advertisements are overwhelmingly used with persuasive
intend. That is the advertisers are striving to alter our behavior and or levels of awareness,
knowledge and attitude, and so on in a manner that would be beneficial to them.
BASIC FEATURES OF ADVERTISING
On the basis of various definitions it has certain basic features such as:
1.

It is a mass non-personal communication.

2.

It is a matter of record.

3.

It persuades buyers to purchase the goods advertised.

4.

It is a mass paid communication.

5.

The communication media is diverse such as print (newspapers and magazines)

54

WHOS INVOLVED
Advertising can be thought of as a five-part business.

Advertisers who something use

Advertising agencies and are sometimes assisted by

Support Organizations sent their messages through

Media(generally mass) to potential

Consumers of the product, service.

Advertising is a key part of marketing, but far from being (as is often assumed) the sum of it.
Advertising is the use of media to inform consumers about something and or to persuade
them to do something in effect; it brings product and consumers together, and then modulates
the relationship between them.

WHAT IS ADVERTISING
It is a mass communication of information intended to persuade buyer to buy product with a
view of maximizing a companys profits. The elements are.

It is a Mass Communication reaching large number of customers.

It makes mass production possible. (Helps the company reach economics of scale).

It is a non-personal communication.

It is a commercial communication.

It is speedy communication.

In todays competitive world. It is an essential communication.

55

FUNCTIONS OF ADVERTISING
For many firms advertising is the dominant element of the promotional mix particulars for
those manufacturers who produce convenience goods such as detergent, non prescription
drugs, cosmetics, soft drinks and grocery products. Advertising is also used extensively by
maters of automobiles, home appliances, etc, to introduce new product and new product
features its uses its attributes, pt availability etc.
Advertising can also help to convince potential buyers that a firms product or service
is superior to competitors product in make in quality, in price etc. it can create brand image
and reduce the likelihood of brand switching even when competitors lower their prices or
offer some attractive incentives.
Advertising is particularly effective in certain other spheres too such as:
i)

When consumer awareness of products or service is at a minimum.

ii)

When sales are increasing for all terms in an industry.

iii)

When a product is new and incorporates technological advance not strong and.

iv)

When primary buying motive exists.

It performance the following functions:

Promotion of sales

Introduction of new product awareness.

Mass production facilitation

Carry out research

Education of people.
56

TYPES OF ADVERTISING
Broadly speaking, advertising may be classified into two categories viz., product and
institutional advertising.

Product Advertising:
The main purpose of such advertising is to inform and stimulate the market about the
advertisers products of services and to sell these. Thus types of advertising usually promote
specific, trended products in such a manner as to make the brands seam more desirable. It is
used by business government organization and private non-business organizations to promote
the uses features, images and benefits of their services and products. Product advertising is
sub-divided into direct action and indirect action advertising, Direct action product
advertising wages the buyer to take action at once, ice he seeks a quick response to the
advertisement which may be to order the product by mail, or mailing a coupon, or he may
promptly purchase in a retail store in response to prince reduction during clearance sale.
Product advertising is sub-divided into direct & indirect action advertising & product
advertising aims at informing persons about what a products is what it does, how it is used
and where it can be purchased. On the other hand selective advertising is made to meet the
selective demand for a particular brand or type is product.

57

Institutional Advertising:
It is designed to create a proper attitude towards the sellers to build company image
or goodwill rather than to sell specific product or service. Its purpose is to create a frame of
mind and to implant feeling favorable to the advertisers company. Its assignment is to make
friends for the institution or organization.
It is sub-divided into three categories: patronage, public, relations and public service
institutional advertising.
i)

In patronage institutional advertising the manufacturer tells his prospects and


customer about himself his policies and lives personnel. The appeals to the patronage
motivation of buyers. If successful, he convinces buyers that his operation entitles
him to the money spent by them.

ii)

Public relations institutional advertising is used to create a favorable image of the


firm among employees, stock-holders or the general public.

iii)

Public service institutional advertising wages public support.

Other Types:
The other types are as follows:
i)

Consumer advertising

ii)

Comparative advertising

iii)

Reminder advertising

iv)

Reinforcement advertising

58

ADVERTISING OBJECTIVES
The long term objectives of advertising are broad and general, and concern the
contribution advertising should make to the achievement of overall company objectives.
Most companies regard advertising main objective as hat of proving support to personal
selling and other forms of promotion. But advertising is a highly versatile communications
tools and may therefore by used for achieving various short and long term objectives. Among
these objectives are the following:
1.

To do the entire selling job (as in mail order marketing).

2.

To introduce a new product (by building brand awareness among potential buyers).

3.

To force middlemen to handle the product (pull strategy).

4.

To build brand preference 9by making it more difficult for middleman to sell
substitutes).

5.

To remind users to buy the product (retentive strategy).

6.

To publicize some change in marketing strategy (e.g., a price change, a new model or
an improvement in the product).

7.

To provide rationalization (i.e. socially acceptable excuses).

8.

To combat or neutralize competitors advertising.

9.

To improve the moral of dealers and/or sales people (by showing that the company is
doing its share of promotion).

10.

To acquaint buyers and prospects with the new uses of the product (to extend the
PLC).

59

BENEFITS
The functions of advertisement, and that purpose its ethics, may be discussion below:
1.

It leads o cheaper prices. "No advertiser could live in the highly competitive arena of
modern business if his methods of selling were more costly than those of his rivals."

2.

It acquaints the public with the features of the goods and advantages which buyers
will enjoy.

3.

It increases demand for commodities and this results in increased production.


Advertising :

4.

a)

Creates and stimulates demand opens and expands the markets;

b)

Creates goodwill which loads to an increase in sales volume;

c)

Reduces marketing costs, particularly product selling costs.

d)

Satisfied consumer demands by placing in the market what he needs.

It reduces distribution expenses in as much as it plays the part of thousands of


salesman at a home. Information on a mass scale relieves the necessity of expenditure
on sales promotion staff, and quicker and wider distribution leads to diminishing of
the distribution costs.

5.

It ensures the consumers better quality of goods. A good name is the breath of the life
to an advertiser.

6.

By paying the way for large scale production and increased industrialization,
advertising contributes its quota to the profit of the companies the prosperity of the
shareholder the uplifts of the wage earners and the solution of the unemployment
problem.

60

7.

It raises the standard of living of the general public by impelling it to use to articles of
modern types which may add to his material well being. "Modern advertising has
made the luxuries of yesterday the necessities of today ..................... It is a positive
creative force in business. It makes two blades of grass grow in the business world
where one grew before.

8.

It establishes the goodwill of the concern for the test articles produced by it and in
course of time they sell like hot cakes consumer search for satisfaction of their needs
when they purchase goods what they want from its beauty, superiority, economy,
comfort, approval, popularity, power, safety, convenience, sexual gratification and so
on. The manufactures therefore tries to improve this goodwill and reputation by
knowing the buyer behavior.

WHY & WHEN TO ADVERTISE


Advertising as a tool to marketing not only reaches those who buy, but also those
whose opinions or authority is counted for example a manufacturer of marble tiles and
building boards advertises not only to people who intend to build houses but also to architect
and engineers. While the manufacturers of pharmaceuticals products advertise to doctors as
well as to the general public. At time it is necessary for a manufacturer or a concern to
advertise things which it does not sell but which when sold stimulates the sales of its own
product. There are concerns like electric heaters, iron etc. because the use of these increases
the demand for their products.
Advertising should be used only when it promises to bring good result more
economically and efficiently as compared to other means of selling. There are goods for
61

which much time and efforts are required in creating a demand by sending salesman to
prospective buyers than by simply advertising them. In the early days of the cash register in
America it was sold by specially trained salesman who called on the prospective users and
had the difficult task of convincing them that they could no longer carry on with the old
methods, and that they urgently needed a cash register. In our country certain publishers have
found it less costly to sell their books by sending salesman from house to house among
prospective buyers than to advertise them. In these two examples the cost of creating demand
would be too high if attempted by advertising alone under such circumstances advertising is
used to make the salesman acceptable to the people they call upon to increase the confidence
of the public in the house. Naturals when there are good profits competitors will be attracted
and they should be kicked out as and when sufficient capital is available by advertising on a
large scale. Immediate result may not justify the increased expenditure but it will no doubt
secure future sales.

DESIGNING ADVERTISING CAMPAIGN:


Advertising is an organized series of advertising messages. It has been defined as "a
planned, co-ordinate series of promotional efforts built around a central theme and designed
to reach specified goals." In other words, it is an orderly planned effort consisting of related
but self contained and independent advertisements. The campaign may appear in one more
media. It has single theme or keynote idea and a single objective or goal. Thus, "a unified
theme of content provides psychological continuity throughout the campaign while visual
and oral similarity provides physical continuity. In short run, all campaign want predetermined psychological reaction in the long run, practically all campaigns have sales goal.
The series of advertisements used in the campaign must be integrated with the sales
62

promotional efforts and with the activities of the sales force. Campaigns vary in length some
may run only for a few days, other for weeks, yet other for a season or the entire year.
Usually a range of 3 to 6 months includes many campaigns. Many factors influences
campaign length such as competitors advertising media, policies, and seasonal falls curves of
the product involved the size of the advertising funds, campaign objectives and the nature of
the advertisers marketing programmed.

OBJECTIVES OF CAMPAIGN
The advertising campaign, especially those connected with the consumers aims at
achieving these objectives:
i)

To announce a new product or improve product.

ii)

To hold consumers patronage against intensified campaign use.

iii)

To inform consumers about a new product use.

iv)

To teach consumers how to use product.

v)

To promote a contest or a premium offer.

vi)

To establish a new trade regional, and

vii)

To help solve a coca regional problem.

The institutional advertising campaigns on the other hand, have these objectives.
i)

To create a corporate personality or image.

ii)

To build a company prestige.

iii)

To keep the company name before the public.

iv)

To emphasize company services and facilities.


63

v)

To enable company salesman to see top executive consistently when making


sales calls, and

vi)

To increase friendliness and goodwill towards the company.

Developing the campaign programmers. The advertising campaigns are prepared by


the advertising agencies, which work on behalf of their clients who manufacture product or
service enterprises, which have services to sell. The word campaign is used because
advertising agencies approach their task with a sum Blanca of military fanfare in which one
frequently hears words like target audience logistics, zero in and tactics and strategy etc.
The account executive co-ordinates the work in a campaign. The creation of an
advertising campaign starts with an exploration of consumers habits and psychology in
relation to the product. This requires the services of statistical trained in survey techniques
and of others trained in social psychology. Statisticians select samples for survey which are
done by trained interviewers who visits individuals, included in the sample and ask question
to find out about their taste and habits. This enquiry often leads to a change in a familiar
product. For instance bathing soap may come in several new colors or cigarette in a new
packet or talcum powder in another size.
Such interviews are often quite essential to find out the appeal of advertising message
for a product that would be most effective with consumers.
After getting the data the account executive puts together the essential elements of his
clients brief, interprets the research findings and draws up what he calls the "advertising
strategy".

64

STAGE IN ADVERTISING CAMPAIGN


Several steps are required to develop an advertising campaign the number of stages
and exact order in which they are carried out may vary according to organizations resources,
the nature of its product and the types of audiences to be reached. The major stages/steps are:
1.

Identifying and analyzing the advertising.

2.

Defining advertising objects.

3.

Creating the advertising platform.

4.

Determining the advertising appropriation.

5.

Selection media plan.

6.

Creating the advertising message.

7.

Evaluating the effectiveness of advertising.

8.

Organizing of advertising campaign.

1.

Identifying & Analyzing the Advertising target:


Under this step it is to decided as to whom is the firm trying to reach with the

message. The advertising target is the group of people towards which advertisements are
aimed at four this purpose complete information about the market target i.e. the location and
geographical location of the people, the distribution of age, income, sex, educational level,
and consumers attitudes regarding purchase and use both of the advertising product and
competing products is needed with better knowledge of market target, effective advertising
campaign can be developed on the other hand, if the advertising target is not properly
identified and analyzed the campaign is does likely to be effective.
65

2.

Determining the advertising objectives:


The objectives of advertisement must be specifically and clearly defined in

measurable terms such as "to communicate specific qualities about a particulars product to
gain a certain degree of penetration in a definite audience of a given size during a given
period of time", increase sales by a certain percentage or increase the firms market shares."
The goals of advertising may be to:
i)

Create a favorable company image by acquainting the public with the services
offered available to the employees and its achievements.

ii)

Create consumers or distributor awareness by encouraging requests providing


information about the types of products sold; providing information about the
benefits to be gained from use of the company's products or services; and
indicating how product (or services) can be used;

iii)

Encourage immediate sales by encouraging potential purchasers through


special sales contests, getting recommendation of professional people about
company's products etc.

iv)

It secures action by the reader through associating ideas, repetition of the


same name in different contexts, immediate action appeal.

3.

Creating the Advertising platform:


An advertising platform consists of the basic issues or selling points that an advertiser

wishes to include in the advertising campaign. A single advertisement in an advertising


campaign may contain one or more issues in the platform. A motorcycle producers

66

advertising platform should contain issues which are of importance to consumers filling and
such issues also be those which the competitive product do not posses.

4.

Determining the Advertising Appropriation:


The advertising appropriation is the total amount of money which marketer allocates.

For advertising for a specific time period. Determining the campaign budget involves
estimating now much it will cost to achieve the campaigns objectives. If the campaign
objectives are profit relating and stated quantitatively, then the amount of the campaign
budget is determined by estimating the proposed campaigns effectiveness in attaining them.
If campaigns object is to build a particular type of company image, then there is little basis
for predicting either the campaigns effectiveness or determining the budget required.
5.

Selecting the Media:


Media selection is an important since it costs time space and money various factors

influence this selection, the most fundamental being the nature of the target market segment,
the type of the product and the cost involved. The distinctive characteristics of various media
are also important. Therefore management should focus its attention on media compatibility
with advertising objectives.

67

Media
1.

Press Advertising or Print

i)

Newspapers

Form

City, Small town, Sundays, Daily,


weekly, Fortnightly, quarterlies,
financial and annuals, English,
vernacular or regional languages.

ii)

Magazines

General or special, illustrated or


otherwise,

English,

Hindi,

Regional language.
iii)

Trade & Technical Journals, Industrial year Circulated all over the country and
books, commercial, directories, telephone, among

2.

the

industrialist

Directories, references books & annuals.

business magnates.

Direct Mail

Circulars,

catalogues,

brochures,

and

leaflets,
booklets,

folders,colanders, blotters, diaries


& other printed material.
3.

Outdoor or Traffic

Poster and bills on walls, railways


stations platforms outside public
buildings.

SALES PROMOTION

68

While advertising explains the logics behind buying, sales promotion offers can incentives to
do so. Sales promotion operates at three levels.

At the level of consumer it is called consumer promotion e.g. free gifts, samples and
price offs.

At the level of dealers and distributors, it is allied trade promoting e.g. free goods
display contests, dealer sales contest, push money etc.

At the level of sale person it is called sales force promotion e.g. salesmens contest,
benches, sales rallies.

Conjunctionally the glamour in sales promotion is stolen by advertising. Advertising


expenses so far accounted for more than 60% of the total promotional budget.
Today sales promotion are rising rapidly with more and more bands flooding the market, the
pressure to occupy display space at retail outlet is more and retailers thus demand more sales
promotion efforts from their suppliers.

69

CHAPTER 6
DISCUSSIONS ON
TRAINING

70

STUDENTS WORK PROFILE


I was appointed in coke as a supervisor. My role & responsibilities were:

Sales promotion
Making the Distribution strategies.
Checkout the all freezes which are provided by coke.
Find the advertising places.
Survey of the target market.
Find out the competitors strategies in the market.
To giving the knowledge of schemes of coke to retailers.

DESCRIPTION OF LIVE EXPERIENCES

To learn about the sales strategy


To learn that how to increase sales volume
To learn how to treat retailers
To learn about the market demand
71

To learn about the sales promotion and distribution

CHAPTER 8

72

STUDY OF RESEARCH
PROBLEM

STATEMENT OF RESEARCH PROBLEM


This project report takes into account the Various MARKETING STRATEGIES adopted

by COCA COLA.

STATEMENT OF RESEARCH OBJECTIVES

73

This project takes a look that what type of marketing strategy adopted by coke. The two
major global players i.e. Pepsi and Coca-Cola dominate the soft drinks industry in India.
The objectives of the project are to study the importance of advertising and sales promotion
schemes in the soft drinks industry.
The project takes a view on: What is advertising?
The relevance of Advertising and sales promotion in soft drink industry.
Role of Advertising in the Modern Business.

The study also keeps in mind various theories like DAGMAR & AIDS and their relevance in
todays changing scenario.

RESEARCH DESIGN AND METHODOLOGY


The project will involve a study of Advertisements and sales promotions schemes of the soft
drinks industry. The study will include following parameters.
Top of the mind recall.
Brand awareness about an advertisement.

74

The use of celebrity in a particular campaign and their impact.

The mode of the data collection would include both primary and secondary.
The impact of sale promotion schemes would measure on:
Their visibility.
Recall value of a post schemes.
Acceptability of the current scheme by the customers and sales force.

For this purpose both primary and secondary data would be collected.
For clarification certain annexure of ads and sales promotion schemes are added in the end.
The project work started with the collection of secondary data from various sources such as
newspaper, magazines, journals and web sites. Along side two questionnaires were also
prepared one aimed at consumers and the other aimed at retailers together primary data,
regarding the influence and effect of Advertising and sales promotion schemes on the sales of
soft drinks (Carbonated Soft drinks).
This research includes:
Problem identification
Scope of study
Objective of study
Research design

75

Sampling plan
Method of data collection
Sources of data collection
Limitations

1.

Problem Identification:
Marketer should be aware of the perception of customer about his product so that he

can gain maximum out of it. He should be aware of who are decision maker as well as
ultimate buyer of product.
2.

Scope of study:
The scope of this study is kept within the control of individual researcher.

3.

Research Design:
The method adopted for research is Experience Survey i.e. survey of people who

have practical experience of soft drinks in Faridabad, NCR in such a research design the
decision regarding what, where, whom, how much, by what means are concerned. It is the
blue print for the research undertaken.

Measurement and Scaling Technique for Research:

76

In this research the rating scale technique is used. Rating scale involves qualitative
description of a limited no of aspects of thing or of traits of a person. In rating scale we judge
properties of objects without reference with other similar object.
The ranking can be done by graphic rating scale as:
Like very much
Like some what
Natural
Dislike some what
Dislike very much

5.

Sampling Plan:
It includes sample unit, sample size, sample procedure.

Sample Unit: Sample unit is target population of AGRA.


Sample size: Research is done on 200 respondents of AGRA.
6.

Method of data collection:


Observation method
Questionnaire method
Data collection through journal, magazines

77

Data collection through websites of various Soft Drinks related companies.

7.

Sources of data collection:


Primary sources: Sample survey of target population
Secondary sources: Company pamphlets, different journal such as A+M, Business
magazine as business world, business India, industry manual and web sides.

8.

Limitations of Study:
Resources for collection of data are less.
Time period for data collection is short
Difficult to get response from customer.
Experience in field of research is difficult job.

78

CHAPTER 8
ANALYSIS OF
DATA
ANALYSIS OF CONSUMER

Which brand of soft drink you prefer?

79

Sales

39

PepsiCo
Coca Cola

61

When asked about particular brands consumers responded the two colas namely Pepsi and
coke as their favorites. Out of which Coca Cola was leading with 61% while Pepsi came
second at 39%, It was also observed that cola segment was preferred by more than 70% of
the total consumers interviewed.

Why do you prefer it?

80

When asked to the consumers responded availability of a particular brand of soft drink of the
most important in their purchase decision. Through advertising and sales promotion schemes
were also very important while making their final purchase decision as it is an impulse
purchase, consumers often related their purchase with the recall of an ad which their viewed
on television. Apart from easy availability and promotional schemes price was another major
driving factor in the purchase of a soft drink for consumers (Pet bottles prices vary).

When you talk of soft drink advertising which all brands come to your mind
(please specify in order of recall)?

81

Maaza
5%

Others
6%

Pepsi
35%

Limca
9%
Thums up
16%

Coke
29%

When the above question was asked to the consumers they could easily recall Pepsi and
Coke ads almost equally. Though Pepsi had a very minor edge. This question also shows
Pepsis aggressive nature in advertising, which is its trademark the world over. Pepsi has
always been known as an aggressive advertiser and this is also true in Indian market.
Thums up was a distant third because of its continuous attacks on Pepsi.

Do you think the advertising done by the companies affects the sales of their
respective soft drinks?

82

As its is clear from the above graph that advertising as a major impact on the sales of soft
drinks most of the consumers almost 71% thought advertising has direct effect on the sales of
the soft drinks. When consumers were asked about the effect of ads on sales most of them
responded in favor. They said that ads were the most important factor in driving the sales of
any brand. Especially with the younger generation, it often drives them towards a particular
brand of soft drink due to its advertisement.

83

Which from of advertising and sales promotion strategies do you think is


most effective for soft drink industry?

Consumers think that television advertising has a major impact on the sales of soft drinks. As
television reaches maximum urban homes, which are the major market of the soft drinks,
they have a direct impact on the consumers behavior. Apart from that newspaper advertising
is also important. Apart from these advertising media, sales promotion schemes from the next
important strategy.

84

According to you which companys advertising are more creative and


appealing?

HTA, the advertising agency for Pepsi, has come up with many innovative ads in the past,
creating a good impression in the mind of consumers. Most of the consumers interviewed
responded that they like Pepsi ads more than that of Coke. Recently Coke has also come up
with few ads, which are specifically by the consumers.

ANALYSIS OF RETAILERS
85

Type of business

To conduct the research a number of Retail Outlets were visited these retail outlet included
provisions stores, eateries, sweets shops, tea stalls, Dhabas etc. Out of these it was found that
provision stores of the local market where the major sellers of the soft drinks and consumers
usually preferred to buy soft drinks from their local grocery store.

86

Which segment of soft drink consumer generally asked for? (Rank them on
scale 1, 2, 3)1 is max. 3 is min.

As it is an apparent from the above graph when asked about which segment the consumers
generally asked for the retailers respondent that Cola by itself was the largest selling soft
drink amounting to 61% of total soft drink sales. Orange came a distant second at 17%
followed by cloudy lemon, which constituted another 14%.

87

Why do think that a consumer ask for a particular brand of soft drink?

The consumer preferences are very fragile and not firm. Consumers preference usually
changes with the various schemes and the advertising. Which has major impact on their
purchase decision? Price is another critical factor on which the consumer purchase
decision is based. It is often found that the consumers change their preference in
accordance with various price discounts offered to them. Availability is another major
aspect, which decides the actual purchase. A consumer may change his or her preference
based in the fact that which brand is available chilled at that moment.

Major sale of soft drink is due to?


88

Though advertising and sales promotion act as a major tool to attract customers for the
purchase of the particular soft drink, but it is actually the availability that is by far the
most important factors, which drive the sale. Apart from availability the price factor is
again cited as an important factor in the actual sale of the soft drinks. Apart from these
various schemes and sales promotion activities under taken by the company also acts as
sources of sale. The brand preference and loyalty is by far the least important factor
driving the sale.

What are the attributes that influence you to decide which brand of soft drink
to keep? (Rank them on scale of 1-4).

89

The attributes that influence a retailer to keep a particular brand of soft drink are pro
motional schemes brand name consumer pill and company support. Out of these factors
promotional scheme again is the major factor that influences any retailer to keep the stock
of particular brands. Apart from this consumer pull and brand name acts are the major
influencers for the retailers to keep stork of a particular soft drinks. One more factor
which affects the retailers to keep stock of particular soft drinks is the company support
which is provided in from of visi coolers, banners, sign boards etc. through the kind of
company support provided by the majors is almost the same.

Does the promotional scheme of the company have any effect on the sales
of soft drinks brands?
90

As sighted in the above analysis, sale of any soft drink is very much affected by the
promotional schemes provided by the company to the retailers. These schemes act as the
push towards the sales for any soft drink brands.

91

CHAPTER 9
SUMMARY AND
CONCLUSIONS

SUMMARY OF LEARNING EXPERIENCE


92

SWOT ANALYSIS

The overall evaluation of a companys Strength, Weakness, Opportunities and Threats is


called SWOT Analysis.
The SWOT Analysis is further divided into two parts :

Internal environment analysis

External environment analysis

Internal environment analysis (analysis of strength and weakness)


It is one thing to discern attractive opportunities and another to be able to take
advantage of these opportunities. Each business unit needs to evaluate its internal strength
and weakness.
As the research is conducted following strength and weakness of the Coke Company is
found.

Strength

93

1. Good company image.


2. Well trained and experience workers and executives are available.
3. Strong distribution network.
4. Brand 'Thums-Up' alone cover the big market. Adopted two types of distribution
channels (Direct route and indirect route).
5. Effective sales promotion schemes and commission to salesman on achieving target.
6. Effective executive team.

Weaknesses
1. Less personal contacts with retailers.
2. Service is not good.
3. Company officials do not visits outlets regularly.
4. Fewer advertisements Channels.
5. Bad and delay in claim settlement.
6. No proper maintenance of asset as like visi-coolers, dealer board, glow sign, etc.
7. Less availability of dealer board, glow signboard, painting etc.

Opportunity
94

1. High growth rate for fruit drink market.


2. Rural area has a great population of youths in U.P.
3. Rural area has good market share of PepsiCo in India.
4. Therefore there is a need only of marinating this share in future.
5. Targeting the upper middle class for home take segment.

Threats

1. High growth of competitor's products.


2. Better facilities provided by the competitor to their distribution this might lead to
switch over to slice distribution towards competitors.
3. Indifference among distributor and fat dealers.
4. Different effective promotion schemes of competitors.

CONCLUSIONS AND RECOMMENDATIONS

95

CONSUMER PERCEPTIONS

Soft drinks come under the category of products purchased on impulse. Through the
markets is marred by brand loyalty the purchase decision itself is a low involvement
decision. This attitude of impulse buying is slowly changing to occasion-led-buying
and also to some extent to consumption through home refrigerator particularly in
urban areas.

The market is slowly moving from non-alcoholic carbonated drinks to fruit based
drinks and also to plain bottled water due to lower price and ready availability.

Consumers purchase soft drinks primarily to quench thirst. Therefore people traveling
and not having access to hygienic water reach out for soft drink. This accounts for a
large part of the sales.

Brand awareness plays a crucial role in purchase decisions.

Consumers prefer convenient and economy products.

Availability in the chilled from affects the purchase decision. This has made both
companies to push its sales and to increase its retail distribution by offering Visi
Coolers to retailers.

While there is no restriction on consumption of soft drinks by any age group, the
main consumers of this market are people in the age group of 30 and below.

Product differentiation is very low, as all the products taste the same. But brand
loyalty is high in the case of kids and people in the age group of 20-30 years.

96

Consumers are sensitive to the outlay where the purchase of beverages is concerned.
Hence the market is price sensitive.

Due to the high cost of soft drinks, a lot of times consumers prefer beverages like tea,
coffee or other drinks like sharbat and squashes.

Per capita consumption in India is among lowest in the world at 5 bottles per annum
compared to 80 bottles in Thailand and 800 bottles in USA.

Delhi market has highest per capita consumption in the country with 50 bottles per
annum compared to 5 bottles for the country.

RETAILERS PERCEPTIONS
Retailers stated that the consumers are loyal to the particular segment of the soft
drink i.e. cola, orange or lemon. But as far the loyalty for the brands in each
segment is concerned, it is not very significant.

43% of the retailers surveyed told that in soft drinks advertising is the key
component in driving sales. While 32% stated promotional schemes and 20%
brand loyalty as the reason.

As consumers are not very brand loyal where the purchase of soft drinks is
concerned, the retailer push becomes a critical issue. They usually sell the product

97

in which they get the maximum benefit. For this, the companies try to offer them
higher margins

SUGGESTIONS

Although it is very early to suggest any thing to such a internationally renounced


company like Coca-Cola having in the mature stat e of marketing yet for the local market,
client distributors & retailers, based on the interactions & feed backs from various outlets,
segments of customers I would like to suggest as under:

Company should promote good and heart felt Slogans and Jingles.

Company should provide others small advertising items in the form of garlands,
hangers recto the shopkeepers as there are cheap and Q good source of advertising.

Company should sponsor important event like World cup, Asian & other tournament,
any event related to film awards and programmers of local importance.
98

Company, If possible should give schemes to the customers through newspapers


having provision for discounts in purchasing its products.

Company should organizing campaigns & distributes caps, Key rings, glasses,
serving tray, pussels on which company packages are branded.

Chilling equipments should provide on a cost basis.

Chilling equipments (like family freeze, vizzi or Electric bottle cooler) should be
provided to the outlets

If there is any default found in the chilling equipment provided by the company
should be repaired quickly when so required.

Company should ensure good supply of stock.

99

Company should go for more monopoly counters.

Company should give discount with every crate as is being done by Pepsi.

There should be surprise check by the company to endure whether benefits of


schemes provided by the company reach outlets or not and take corrective measures
in case of default.

Company should arrange seminars and meetings with dealers on an ongoing basis on
monthly interval.

Shopkeeper feedback should be taken in regular manner.

A special shopkeepers care cell should be formed to listen the shopkeepers


grievance on the lines of customer care cell.

100

No. of hoardings should be increased.

Flexibility in the allot of monopoly items should be encouraged.

. Some free gifts should also be given on established Brands to stimulance the retailer.

Company should elaborate public announcement on important days like Health day,
Anti drug day world aids day etc.

Company should tap colleges and school canteens. They should be given extra
discounts as these outlets give potential long run customers to the company.

Company should provide Tables, Chairs wall clocks, stands, openers to the retailers
as f or them type of free gifts are significant and they promote those company's
products who provide such items to them

101

CHAPTER 10
ANNEXURES

102

QUESTIONNAIRE FOR CONSUMERS


Name:

Sex:

Age

Location:

1) Which Company brands of soft drink do you prefer?


a) Coca Cola

b) Pepsi

2) Why do you prefer it?


a) Adv. & promotion schemes

b) Preference

c) Price

d) Easy Availability

3) Which form of advertising and sales promotion strategies do


you think is most effective for soft drink industry?
a) Television Advertising

b) Newspaper Advertising

c) Outdoor Advertising

d) Sales promotion schemes

4) According to you which companys advertising are more


Creative and appealing?
a) PepsiCo

b) Coca-Cola

103

5) Do think the advertising done by the companies affects the


sales of their respective soft drinks?
a) Yes

b) No

6) When you talk of soft drink advertising which all brands come to
your mind? (Please specify in order of recall)
---------------------------------------------------------------------------------------------------------------------------------------------------------------

104

QUESTIONNAIRE FOR RETAILERS


1) Type of business is:
a) Provision store

b) Hotel

c) Sweet Shop

d) Dabha

e) Tea Stall

f) Any Other.

2) Which segment of soft drink consumer generally asked for?


a) Cola

b) Orange

c) Clear lemon

e) Cloudy Lemon

e) Others
3) Why do think that a consumer ask for a particular brand of soft drink?
a) Adv. & Promotional Activities

b) Brand Preference

c) Easy Availability

d) Price

4) Major sale of soft drink is due to?


a) Availability
c) Brand Name

b) Price
d) Promotion Schemes

5) What are the attributes that influence you to decide which brand of soft drink to keep?
(Rank them on scale of 1-4).
a) Company Support
c) Brand Name

b) Consumer Pull
d) Promotion Schemes

105

6) Does the promotional scheme of the company have any effect on the sales of soft
drinks brands?
a) Yes

b) No

BIBLIOGRAPHY
REFERENCES

BOOKS:Kottler Philip

Marketing Management

Chunawall S.A.

Essentials of Marketing Research

Kothari C.R.

Research Methodology

Sherlerkar S.A.

Marketing Management

Schiff man Leon. G.

Leslie Lazar Kaunk

Magazines
Business world
Coca-cola company booklet
Pepsi company Booklet

Websites
www.coca-cola.com
www.pepsi.com
www.pepsico.com
www.google.com

Newspaper
106

Times of India
Economic Times

107